HEIMON HINGE,JAINTIA HILLS vs. ITO WARD (1) SHILLONG , SHILLONG

ITA 376/GTY/2026Status: DisposedITAT Guwahati06 October 2026AY 2018-194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee is a non-filer and did not respond to any notices during the assessment proceedings. The AO obtained information under section 133(6) regarding purchases and added 8% of these purchases as estimated business income. The CIT(A) also dismissed the appeal for non-compliance. Considering the assessee's prayer for another opportunity and in the interest of justice, the Tribunal decided to remit the issue back to the AO for de novo adjudication. The assessee is directed to substantiate their case with cogent documents and avoid seeking unnecessary adjournments. The Tribunal stated that no further leniency would be granted if the assessee fails to comply. The issue of the addition of Rs. 6,032/- towards interest income was not expressly decided.

What were the facts?

The assessee, Heimon Hinge, is in appeal before the ITAT against the order of the CIT(A) dated 30.01.2026, which upheld the assessment order passed by the AO under sections 147, 144, and 144B of the Income Tax Act, 1961, dated 02.12.2025. The assessment year is 2018-2019. The assessee failed to file a return of income. The AO issued a notice under section 148, but the assessee did not comply with subsequent notices under section 142(1). Information from HDFC bank indicated cash deposits utilized for business. Lunia Marketing Pvt. Ltd. and Lunia Enterprises confirmed the assessee's trading in rice, sugar, and pulses, and supplied foodgrains. The AO added 8% of purchases as business income, amounting to Rs. 23,53,675/-, and Rs. 6,032/- as interest income. The CIT(A) dismissed the assessee's appeal for non-representation despite notices.

What were the issues?

1. Whether the addition of 8% of purchases as business income is justified, considering the assessee's non-compliance with notices and the AO's estimation, turning on Section 144 of the Income Tax Act, 1961. Assessee's contentions: The assessee claims no knowledge of income tax proceedings due to operating in a remote area, leading to non-filing of returns and non-response to notices. The assessee requests one more opportunity to present cogent documents to substantiate their case. Revenue's contentions: The Revenue relies on the orders of the lower authorities, arguing that the assessee was given multiple opportunities to substantiate their case but continuously disregarded notices issued by the AO and CIT(A).

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 250,Section 139(1),Section 148,Section 142(1),Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, GUWAHATI BENCH, GUWAHATI

For Appellant: Shri Kishor Jain, FCA
For Respondent: Shri Santosh Kumar Karnani, Sr. DR
Hearing: 15.09.2026Pronounced: 06.10.2026

PER LAXMI PRASAD SAHU, AM: This appeal is filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 by National Faceless Appeal Centre, Delhi [hereinafter referred to as ‘the ld. CIT(A)’], dated 30.01.2026 arising out of assessment order passed by the Assessing Officer (In short, ‘the AO’) u/s 147 r.w.s. 144 r.w.s. 144B of the Act, dated 02.12.2025, challenging the order of ld. CIT(A) and he has confirmed the addition made by the AO.

2.

Briefly stated the facts of the case are that as per information the assessee did not file his return of income u/s 139(1) of the Act and substantial cash deposited in his bank account maintained with 2 ITA No.376/Gty/2026/AY 2018-19 Heimon Hinge vs

The order continues below.

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